Stocks close slightly higher on first day of 2018

Stocks closed slightly higher on Monday as investors opted for value buying on the first day of new year amid positive developments like revision of petroleum products’ prices and below expectation inflation numbers, dealers said.

Jawwad Abubakr at Elixir Securities said equities closed higher on the first day of Year 2018. “Market started on a dull note as absence of local banks due to bank holiday and little participation from foreigners led to thin volumes with stocks drifting lower in early hours. However, as the day progressed a number of stocks witnessed buying and rebounded from their lows.”

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.59 percent or 239.56 points to close at 40,711.04 points. KSE-30 shares index gained 0.76 percent or 153.56 points to close at 20,369.23 points. As many as 329 scrips were active of which 183 advanced, 122 declined and 24 remained unchanged.

The ready market volumes stood at 118.261 million shares as compared with the turnover of 240.96 million shares a day earlier. Engro Corp (ENGRO), up 3.0 percent, Kot Addu Power (KAPCO), up 3.9 percent, and Pak Electron (PAEL), up 5.0 percent led the leader board.

Meanwhile, Pak Suzuki Motor Company (PSMC) has raised the prices of some of its variants, effective from the January 1, 2018 by Rs10,000 to Rs20,000. An analyst at JS Global Capital said the price increase would enable PSMC to pass on the impact of rising cost to the end consumers and help maintain volumes due to higher current demand.

Latest increase in petroleum products prices fuelled expectations of an early hike in discount rate and propelled select financials to trade positive with Habib Bank (HBL), up 4.3 percent contributing the most positive points on KSE-100 index. Steels too remained in limelight after local manufacturers increased hot rolled coil (HRC) prices last month to pass on the impact of rupee depreciation.

Meanwhile, inflation reading announced near the day's end coming little lower than expectations at 4.57 percent for December 2017 aided in keeping the momentum positive. With political dust settling down, analysts expect a decent increase in volumes, including from foreign investors, who will guide the market direction in the coming days.

Companies reflecting highest gains include Rafhan Maize, up Rs131 to close at Rs6,931/share, and Bata Pakistan, up Rs122.61 to close at Rs2,574.88/share. Companies reflecting most losses include Pakistan Tobacco, down Rs107.38 to close at Rs2,040.54/share, and Abbot Laboratories, down Rs29.59 to end at Rs668.02/share.

Highest volumes were witnessed in TRG Pakistan with a turnover of 15.09 million shares. The scrip gained Rs1.38 to close at Rs30.98/share. Dost Steels was second with a turnover of 14.013 million shares. It gained 98 paisas to close at Rs11.04/share. Engro Polymer was third with a turnover of 9.5 million shares. It shed 59 paisas to finish at Rs27.97/share.